Hey everyone, I’m thinking about starting a nonprofit to support local education initiatives. I’m kinda lost on the legal side of things. What should I keep in mind to make sure everything’s legit?
Ty said:
Congrats on the decision! First thing, make sure you have a clear mission statement. It really shapes everything else.
Mission statement? What exactly should that include?
Ty said:
Congrats on the decision! First thing, make sure you have a clear mission statement. It really shapes everything else.
Yeah, a solid mission helps with getting tax-exempt status too.
@Spence
Tax-exempt? How does that work?
Frost said:
@Spence
Tax-exempt? How does that work?
It means your nonprofit doesn’t pay federal income taxes. You need to apply for 501(c)(3) status in the US.
Don’t forget to choose the right legal structure. Most nonprofits are charitable corporations, but there are other options too.
Morgan said:
Don’t forget to choose the right legal structure. Most nonprofits are charitable corporations, but there are other options too.
What other options are there besides charitable corporations?
@Kim
You can consider associations, trusts, or foundations depending on your goals and size.
Morgan said:
Don’t forget to choose the right legal structure. Most nonprofits are charitable corporations, but there are other options too.
Yeah, the structure affects your governance and reporting obligations.
You’ll need to file articles of incorporation with your state. Make sure your organization’s name is unique!
Nova said:
You’ll need to file articles of incorporation with your state. Make sure your organization’s name is unique!
How do I check if the name is unique?
Nova said:
You’ll need to file articles of incorporation with your state. Make sure your organization’s name is unique!
How do I check if the name is unique?
Most states have an online database where you can search for existing business names.
Nova said:
You’ll need to file articles of incorporation with your state. Make sure your organization’s name is unique!
Also, remember to state that your assets won’t go to private individuals if you dissolve.
After incorporation, apply for tax-exempt status. In the US, that’s IRS Form 1023 or 1023-EZ.
VividVagabond said:
After incorporation, apply for tax-exempt status. In the US, that’s IRS Form 1023 or 1023-EZ.
Is there a big difference between 1023 and 1023-EZ?
VividVagabond said:
After incorporation, apply for tax-exempt status. In the US, that’s IRS Form 1023 or 1023-EZ.
Is there a big difference between 1023 and 1023-EZ?
1023-EZ is a shorter form for smaller nonprofits with simpler structures.
VividVagabond said:
After incorporation, apply for tax-exempt status. In the US, that’s IRS Form 1023 or 1023-EZ.
Don’t forget, maintaining tax-exempt status requires following certain rules like no political campaigning.
Create bylaws and governance policies. They act as your internal rulebook.
Brown said:
Create bylaws and governance policies. They act as your internal rulebook.
What should be included in the bylaws?
Brown said:
Create bylaws and governance policies. They act as your internal rulebook.
What should be included in the bylaws?
Things like board roles, voting procedures, meeting frequency, and conflict of interest policies.